, and

iv

provision restricting the surrender of losses and other amounts for the purposes of group relief.

Prevention of surrender of losses

225AEffect of notice: surrender of losses ineffective, etc

1

This section applies where—

a

an accelerated payment notice is given (and not withdrawn), and

b

an amount is specified in the notice in accordance with section 220(2)(d) or 221(2)(d).

2

P may not consent to any claim for group relief in respect of the amount so specified.

3

Subject to subsection (2), paragraph 75 (other than sub-paragraphs (7) and (8)) of Schedule 18 to FA 1998 (reduction in amount available for surrender) has effect as if the amount so specified ceased to be an amount available for surrender at the time the notice was given to P.

4

For the purposes of subsection (3), paragraph 75 of that Schedule has effect as if, in sub-paragraph (2) of that paragraph for “within 30 days” there were substituted “ before the end of the payment period (within the meaning of section 223(5) of the Finance Act 2014) ”.

5

The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made in accordance with paragraph 75(6) of Schedule 18 to FA 1998 where, pursuant to subsection (3), a claimant company receives—

a

notice of the withdrawal of consent under paragraph 75(3) of that Schedule, or

b

a copy of a notice containing directions under paragraph 75(4) of that Schedule.

6

Subsection (7) applies where—

a

a company makes such an amendment to its company tax return at a time when an enquiry is in progress into the return, and

b

paragraph 31(3) of that Schedule prevents the amendment from taking effect until the enquiry is completed.

7

Section 219 (circumstances in which an accelerated payment notice may be given) has effect, in its application to that company in a case where section 219(2)(a) applies (tax enquiry in progress), as if—

a

for the purposes of section 219(3), that amendment to the return had not been made,

b

in section 219(4), after paragraph (c) there were inserted—

d

P has amended its company tax return, in accordance with paragraph 75(6) of Schedule 18 to FA 1998, in circumstances where pursuant to section 225A(3), P has received—

i

notice of the withdrawal of consent under paragraph 75(3) of that Schedule, or

ii

a copy of a notice containing directions under paragraph 75(4) of that Schedule,

but paragraph 31(3) of that Schedule prevents that amendment having effect.

c

in section 220(4), after paragraph (c) there were inserted—

d

in the case of a notice given by virtue of section 219(4)(d) (cases involving withdrawal of consent for losses claimed), it were assumed that P had never made the claim to group relief to which the amendment to its company tax return relates.

d

in section 227(10), for “or (c)” there were substituted “ , (c) or (d) ”.

8

Subsections (2) and (3) are subject to—

a

section 227(14) to (16) (provision about claims for group relief, and consents to claims, following amendment or withdrawal of an accelerated payment notice), and

b

section 227A (provision about claims for group relief, and consents to claims, once tax position finally determined).

Group relief claims after accelerated payment notices

227AGroup relief claims after accelerated payment notices

1

This section applies where as a result of an accelerated payment notice given to P—

a

P was prevented from consenting to a claim for group relief in respect of an amount under section 225A(2), or

b

pursuant to section 225A(3), a consent given by P to a claim for group relief in respect of an amount was ineffective.

2

If a final determination establishes that the amount P has available to surrender consists of or includes the amount referred to in subsection (1)(a) or (b) or a part of it (“the allowed amount”)—

a

section 225A(2) and (3) (which prevents consent being given to group relief claims) ceases to apply in relation to the allowed amount, and

b

a claim for group relief in respect of any part of the allowed amount may be made within the period of 30 days after the relevant time.

3

The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes a claim for group relief in respect of any part of the allowed amount within the time limit allowed by subsection (2)(b).

4

In this section—

• “final determination” means—

  1. a

     a conclusion stated in a closure notice under paragraph 34 of Schedule 18 to FA 1998 against which no appeal is made;

  2. b

     the final determination of a tax appeal within paragraph (d) or (e) of section 203;

• “relevant time” means—

  1. a

     in a case within paragraph (a) above, the end of the period during which the appeal could have been made;

  2. b

     in the case within paragraph (b) above, the end of the day on which the final determination occurs.

, or

d

the amount of tax specified in an assessment under paragraph 76 of Schedule 18 to the Finance Act 1998 where—

i

an asserted surrenderable amount is specified in the notice under section 220(2)(d) of the Finance Act 2014 or under paragraph 4(1)(d) of Schedule 32 to that Act, and

ii

the claimant company has failed to act in accordance with paragraph 75(6) of Schedule 18 to the Finance Act 1998.